Why Helios (HLIO) Shares Are Getting Obliterated Today

Adam Hejl /
2024/07/09 3:38 pm EDT

What Happened:

Shares of motion and electronic control manufacturer Helios (NYSE:HLIO) fell 14.6% in the morning session after KeyBanc analyst Jeffrey Hammond downgraded the stock's rating from Overweight to Sector Weight. The analyst added "The uncertainty around the company's future leadership creates an overhang that is difficult to ignore." 

This follows the move by HLIO's board to put Josef Matosevic, the Company's President, Chief Executive Officer and Director, immediately on a paid leave effective July 1, 2024. This action was in response to allegations of a potential violation of the Company's Code of Business Conduct and Ethics. 

Sean Bagan was appointed to serve as Interim President and Chief Executive Officer in addition to his role as Chief Financial Officer.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Helios? Access our full analysis report here, it's free.

What is the market telling us:

Helios's shares are not very volatile than the market average and over the last year have had only 9 moves greater than 5%. Moves this big are very rare for Helios and that is indicating to us that this news had a significant impact on the market's perception of the business.

Helios is down 7.7% since the beginning of the year, and at $41.26 per share it is trading 38.5% below its 52-week high of $67.11 from July 2023. Investors who bought $1,000 worth of Helios's shares 5 years ago would now be looking at an investment worth $918.82.

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